Appleton Papers begins consent solicitation for 8 1/8%, 9¾% notes

By Angela McDaniels

Seattle, May 26 - Appleton Papers Inc. has begun a consent solicitation to amend the indentures governing its 8 1/8% senior notes due 2011 and 9¾% senior subordinated notes due 2014, according to a company news release.

The proposed amendments will allow Appleton to make distributions to parent company Paperweight Development Corp., will allow Paperweight to make certain payments that are required by Appleton's employee stock ownership plan and will make other related changes to the restricted payments covenant and the definitions in the each of the indentures.

The consent solicitation will expire at 11:59 p.m. ET on June 9, unless extended.

Noteholders who consent will receive $10.00 per $1,000 principal amount of notes held as of May 25.

The proposed amendments to each indenture require the consent from holders of at least a majority of each series of notes.

Appleton is an Appleton, Wis., paper company.

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